Washington, D.C.—In response to reports emerging from today’s White House meeting with oil industry CEOs that the discussions included potential cuts in U.S. production, Securing America’s Future Energy (SAFE) President and CEO Robbie Diamond made the following statement:
“A global production cut is not going to solve the structural deficiency of the oil market, which contributed to this precipitous drop in oil prices when Russia and Saudi Arabia launched their price war against U.S. shale production on top of the demand destruction due to COVID-19. The U.S. joining in this government manipulation would be foolhardy and a reversal of our nation’s commitment to free markets. This would invalidate American efforts to enforce global antitrust laws, and give OPEC carte blanche to operate as it pleases.”
At critical moments like these, the United States should be reaffirming its commitment to free and fair markets. As outlined by SAFE in a new issue brief, and in an independent 2019 legal analysis commissioned by SAFE, the No Oil Producing and Exporting Cartels Act (NOPEC) would be a strong first step in this regard, and provide the United States with the tools to clamp down on global oil market manipulation—a practice that ultimately hurts either U.S. consumers or our domestic oil industry.
“What is needed now is a statement of American commitment to free markets, and a rebuttal to the OPEC+ cartel’s continued attempts to manipulate the global oil market. The U.S. should fight this battle against American innovation by raising the cost to organizations and countries that engage in this behavior. Passing NOPEC would be a strong step in that direction. Attempts to mitigate and placate the cartel’s actions have not worked, so perhaps it is time to use a stick instead of offering a carrot,” Diamond added.
About Securing America’s Future Energy
Securing America’s Future Energy (SAFE) is an action-oriented, nonpartisan organization that aims to reduce America’s dependence on oil. Near-total dependence on petroleum in the transportation sector undermines the nation’s economic and national security, and constrains U.S. foreign policy. To combat these threats, SAFE advocates for expanded domestic production of U.S. oil and gas resources, continued improvements in vehicle fuel efficiency, and transportation sector innovations including electric vehicles, natural gas trucks, and autonomous vehicles. In 2006, SAFE joined with General P.X. Kelley (Ret.), 28th Commandant of the U.S. Marine Corps, and Frederick W. Smith, Chairman, President, and CEO of FedEx Corporation, to form the Energy Security Leadership Council (ESLC), a group of business and former military leaders committed to reducing the United States’ dependence on oil. Today, the ESLC is co-chaired by Frederick W. Smith and General James T. Conway (Ret), 34th Commandant of the U.S. Marine Corps.